Eamon Gilmore (Dún Laoghaire, Labour)

That will not provide much comfort to the people obliged to pay these prices. I refer, in particular, to those on fixed incomes, such as pensioners, who are being affected by rising food prices. The price of a loaf of bread is 20% higher than it was at this time last year and the price of a litre of milk increased by 30% in the same period. Action is required in respect of this matter. It is not good enough to state that a discussion will take place between the Tánaiste and the chief executive of the National Consumer Agency in which they will bemoan what is happening.

In the past couple of years, the Government stood down the groceries order and stated that increased competition would lead to a reduction in prices. However, one of the biggest beneficiaries of the abolition of the groceries order, Tesco — the chief executive of which pays himself £10 million sterling per annum — is charging up to 50% more for goods in Ireland than it does at its UK branches. The National Consumer Agency may, as the Taoiseach stated, have highlighted some of what is happening. However, it does not appear to have taken direct action to protect consumers from the rip-off prices being charged by some retail outlets.

If the rip offs being visited upon consumers are not curtailed by the retailers responsible for them, the Government will be obliged to take action to remedy the situation. In light of the fact that the euro is strengthening against sterling, prices here should be falling and people should be reaping the benefits. Irish businesses that export their products are feeling the squeeze as a result of the change in the relationship between the euro and sterling. However, consumers are not enjoying the benefits of that change.

In certain shops, one can find items which are priced in sterling — I understand this practice is not legal — but the retailer will not allow one to purchase them in that currency. I met a shopper this morning who informed me that she requested to pay the sterling exchange rate for a particular item. However, the retailer insisted on charging her the higher euro price. This type of behaviour cannot be allowed to stand and people cannot continue to be ripped off in this way.

In his earlier reply, the Taoiseach failed to address my point in respect of the price of diesel. Why are motorists and hauliers obliged to pay so much more for diesel than used to be the case? What is happening in this regard? It appears the oil companies are engaged in some kind of cartel activity in order to hike up the price of diesel and rip off motorists and hauliers. The latter will have consequences down the line for jobs and businesses.

See this speech in context